Repayment of a loan is the most important stage of lending. To avoid delays and penalties, the borrower must make a payment on time, which is stipulated by the terms of the contract. At the same time, the funds transferred to the lender should be enough to fully cover the debt and accrued interest. But, despite the fact that companies offer a wide range of ways to transfer money, borrowers often face problems in paying loan obligations. They are late with deposits, send transfers to other recipients, and even become victims of scammers. As a result, their loans are not repaid on time, which leads to delinquencies. To avoid this, it is important not only to accumulate the necessary amount for payment. A person must take a responsible approach to the process of depositing money and observe certain security measures.
How long do you have to pay off speedy cash loans?
Payday loans are small, short-term loans. They’re usually for $1,000 or less, and typically have to be paid off within 2-4 weeks. Also called cash advance loans, they are legal in most states. To get a payday loan, you give the lender a personal check for the amount you want to borrow, + the lender’s fees.
What problems can a borrower face?
At first glance, paying off a loan is a simple financial transaction. All the borrower needs to do is to read the terms and conditions, select the payment method and make the transfer within the time period originally designated for this. But not all clients want to spend time studying up-to-date information. Many people are in a hurry to pay off the creditor and do not pay due attention to the process of depositing funds. However, even if a person reads the recommendations of the lender and understands the payment rules, there is no guarantee that he or she will be able to avoid an unpleasant situation. In some cases, problems arise due to circumstances beyond the control of consumers, which subsequently leads to delays.
When paying a loan to a microfinance organization, a person risks facing the following problems:
- your paycheck was delayed for a few days;
- the transfer has not been credited to the lender’s account;
- the deposited funds were not enough to fully cover the debt.
Regardless of the reason why the loan was not repaid on time, the microfinance organization will not understand the current situation. Using the right granted by law, they will accrue penalty interest and commissions stipulated by the contract. And then they will transfer information about the delay in the credit bureau.
How to pay off a loan: recommendations
If a microfinance organization specializes in online lending, you can pay for its loan only through an intermediary. To make it easier for the consumer to understand the repayment process, lenders post the necessary information on their websites. On the website, you can find up-to-date information on loan repayment. However, if the company has not prepared detailed repayment instructions, it is enough for the client to follow certain recommendations.
Do not pay through “doubtful” operators
Fraud can be encountered not only when applying for a loan. You can become a victim of intruders even in the process of paying off debt. It is enough to make a payment through a “doubtful” self-service terminal and you can make yourself a lot of problems. And the funds may not be returned even after contacting law enforcement agencies.
To protect clients from possible troubles, lenders publish information on their websites about intermediary partners who accept funds to repay loans. By transferring a payment through such an operator, you can not be afraid of deception or fraud. But if the “permitted” terminal is located on the other side of the city, it is not a fact that the consumer will want to spend time on a long trip. He or she can make a transfer anywhere, but only without a guarantee of timely receipt of money.
Another nuance that clients often forget about is the transfer fee. As a rule, it is significantly lower for lender partners compared to other operators. Due to this, you can save on additional costs when servicing debt.
Make a payment at least 2 days before the due date
If the borrower receives a paycheck on the 5th of May, and the loan must be paid off by the 6th of May, it is quite logical that he or she will make the transfer after the receipt of a paycheck. But if you can deposit money 3-5 days earlier than the date specified in the contract, you should not refuse such an opportunity. In this case, you can avoid the following troubles:
- Loss/theft. Money set aside for repayment can be stolen by thieves, both from an apartment and from a bank card. There is always a risk of losing your wallet and losing your savings. If the savings are intended to cover a loan obligation, it is better to immediately spend them for their intended purpose. Still, there is no point in delaying payment and waiting for the end of the contract.
- Large overpayment. A loan is not a cheap pleasure, even if it was issued at a reduced rate. But in case of early payment, you can reduce the overpayment, which is beneficial to the client. After depositing funds, the company will recalculate the amount of interest and charge only for the actual loan term.
- Delays. There is no guarantee that the consumer will be able to make the payment on the last day of the contract. For example, you may have a medical emergency or there is a technical failure of the system, which will prevent you from fulfilling your obligation. And if you are late with your payment for at least one or two days, the lender will charge penalty interest immediately, which will increase the client’s expenses.
Check the details and do not be in a hurry
Even if the borrower is in a hurry and makes a payment late, he or she must take the time to repay the debt. Do allow any mistakes in the bank account details, otherwise, the funds will go to another recipient. And it will take a lot of effort to find the payment and settle the situation with the creditor.
If money is deposited in the ATM, it is important to correctly enter all the requested information. To do this, it is enough to clearly follow the prompts of the system and take your time when entering the data.
When making a non-cash transfer at the bank’s cash desk, it is important to make sure that the operator has correctly entered the provided details. If something is indicated incorrectly, you should demand to correct the data and only after that sign the receipt.
If you independently perform the transfer, only you are responsible for the implementation of such an operation. But you can easily avoid the mistake if you carefully enter the payment data provided by the lender.
Get a receipt
As soon as you repay the loan in full, you must request a document confirming the debt closure. It does not matter how the borrower decides to deposit funds to cover the debt (at the cash desk, by bank transfer, through the ATM).
Not all people realize the importance of such a document. Some clients simply do not take printed receipts, others throw them away immediately, believing that there is no need to be afraid of problems if the operation is completed. But if you do not have a payment document, you will not be able to prove the fact of transferring funds. Therefore, if a force majeure situation arises and the money does not reach the lender, you will be in an extremely disadvantageous position. In this regard, it is important to always take such a document and not refuse to receive it.
If you did not get a printed check when paying a loan at the terminal, you should try to fix this in any way available. For example, you can take a picture of the device screen with information about the payment. As a last resort, you can record the exact date and time of the transaction. The money may not reach the recipient and you will be forced to use this information to protect your interests. But it is better to play it safe and protect yourself from possible troubles.
Don’t ignore the situation
If the company has not received a payment, it is important to try to take all possible actions to avoid delays. Do not think that having a receipt will help you easily prove the fact of depositing funds and not be afraid of the consequences. Such a document will help to find the transfer and achieve the write-off of fines only if the client does not ignore the current situation. And for this, you need to contact the lender to fix the problem.
If the money has “disappeared”, it is important to:
- make sure that the transfer was made using the correct details. It is possible that changes were made to them, which the consumer did not know about. This will be easy to do if you have a payment receipt.
- make a second payment to the lender, which will help to avoid delay (if possible). It is better to return the loan in another way (for example, if a bank transfer is lost, it is better to make a payment through the ATM).
- contact the intermediary, report that the company did not receive the transfer, and ask to sort out the situation. It is also important to notify your lender of a problem.
Make sure the lender received the payment
The situation when the borrower paid off the loan and found out about the delay a month later is quite typical for a payday loan. To avoid this, it is important to make sure that the company received the payment and that the transferred funds were enough to cover the debt in full. For this, you should:
- check the loan status in the user’s personal account. This is best done a few hours after the operation. The personal account reflects all the information about the current obligation. And, to make sure that the loan is repaid, just look at the information in the corresponding section.
- contact customer support. If you are not sure that you interpreted the information from your personal account correctly, you can use the help of the support service.
Even if information about the loan repayment appeared in your personal account, it will not be superfluous to re-check its status in a few days. If it is closed, you can contact the lender to obtain a document on debt repayment.
Payments in favor of credit non-banking companies are accepted by intermediaries. But they have the right to charge a commission for the transfer of funds. Clients often forget about such nuance and do not always correctly calculate the payments. As a result, the loan is not repaid in full and bad debts arise. But if you check the loan status immediately after making the payment, you can avoid serious problems. If there is a discrepancy in the amounts, you will have time to repay the debt before the expiration of the contract.